Wall Street Breakfast: Must-Know News

Wall Street Breakfast Editors submit:Top StoriesOECD fears that eurozone crisis may hit global recovery. The OECD has warned that the global recovery is "fragile, extremely uneven across different regions and could be derailed by the crisis in the euro area." The group cut its forecast for 2012 eurozone GDP to -0.1% from +0.2% but raised its outlook for the U.S. to +2.4% from +2%. Joining the renewed drumbeat for eurozone bonds, the OECD declares, "we need decisive policy action now." Opinion:Is the market in trouble? Fitch downgrades Japan on "leisurely" fiscal plan. Fitch has reduced Japan's local currency grade by one notch to A+ with a negative outlook, and its foreign-currency rating by two steps, also to A+. "TheComplete Story »

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With Japan's public debt about to hit 240% of GDP, Fitch Downgrades Japan's Sovereign Rating
The ratings agency Fitch on Tuesday lowered its assessment of Japan’s sovereign credit to A+, an investment grade just above the likes of Spain and Italy, and criticized Tokyo for not doing more to pare down its burgeoning debt.

Just like that BBBrazil is BBB-razil, with a negative outlook, as the third rating agency being to catch up to the others, most notably S&P, which cut Brazil to Junk when it downgraded Brazil to BB+ with (also negative outlook) just one month ago, after Fitch concludes that "Brazil's economic recession is likely to be deeper and longer than Fitch's earlier expectations and its performance has diverged materially from those of its rating peers." The full Fitch report below: Fitch Downgrades Brazil to 'BBB-'; Outlook Negative

Wall Street Breakfast Editors submit:EconomyS&P has reduced Russia's rating by a notch to BBB-, or one grade above junk level, and kept the country's outlook at negative as the tensions with Ukraine continue to ratchet up.

On the even of Bastille Weekend and the 100th anniversary of the Tour de France, you know it must be bad when the French-company-owned ratings agency Fitch is forced to remove its AAA rating from France. Key drivers include Debt-to-GDP projections rising and substantially weaker economic output and forecasts.

The France-based ratings agency has just joined China's Dagong, and US Moody's by Fitch-slapping Italy with a BBB ratings handle. Citing four main reasons: election results which and 'non-conducive' for further structural reforms, deeper than expected recession, greater than expected budget deficits, and a weak government less able to respond to shocks. But apart from all that, as we noted earlier, Italian stocks and bonds are bid. Via Fitch: